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Hargreaves Lansdown confirms charging changes
by David Sandham on Dec 02, 2011 at 08:01
Hargreaves Lansdown has written to clients confirming its introduction of a flat monthly charge on some of the funds on its Vantage platform.
The £1 or £2 platform charge will replace the 0.5% annual charge it makes on holdings of some funds, with and the new fee will also apply to a small number of funds for which it currently does not make any charge, such as the HSBC FTSE All Share Index.
The company said that the new fee will only apply to a minority of funds, adding that the charges, where applicable, for cash, shares, investment trusts, exchange traded funds, bonds and gilts will remain unchanged.
The new fees will take effect from 31 December.
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5 comments so far. Why not have your say?
Bigmac
Dec 02, 2011 at 08:29
is this the end of Hargreaves? Let's hope so!
report thisT
Dec 02, 2011 at 09:37
Surely there must be a threshold where, for larger holdings £2,400 or £4,800 this represents a reduction in charges?
Or am i missing something as i would have thought that the majority of investors would have more than £2,400 in each fund?
report thisJohn Housden
Dec 02, 2011 at 09:43
T, yes there is a threshold were HL are currently charging the 0.5% pa extra, but in some instances they will be charging for funds not subject to the 0.5% fee, eg HSBC trackers.
report thisJack Daniels
Dec 02, 2011 at 14:07
I thought we'd had this story already!
report thisPeter Dixon
Dec 03, 2011 at 12:20
While the attention is on HSBC trackers, it's not just index trackers, it actually applies to a variety of funds including some active managed funds and funds where HL are already getting 0.35% trail.
Nor have they written to those affected but instead listed some, but not all, of the funds buried deep in their routine monthly junkmail "Investment Times". They haven't sent letters specifically about the new charges except to those who opted out of their junkmail and haven't produced a full list of the funds affected. Clients need to check for changes in the Key Features for each of the funds they hold themselves.
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